Public Investment in Energy Efficiency Phase 2 (PIE2)

Proyecto terminado
Openning launch of the thermofitted kindergarden in Songinokhairhan district
Openning launch of the thermofitted kindergarden in Songinokhairhan district ©SDC

PIE2 aims to increase effectiveness of Public Investment Management (PIM) and of Public Finance Management (PFM) replicating and upscaling the achievements of PIE1 in the two poorest districts of Ulaanbaatar city. Improved PIM and PFM capacities, practices, procedures and regulations will be applied to the thermoretrofitting of public buildings, i.e. 20 schools and kindergartens, aiming for demonstration effect for replication. The need to improve education facilities corresponds to a top priority for UB citizens.

Región/País Tema Período Presupuesto
Cambio climático y medio ambiente
Empleo y desarrollo económico
Conservación de energía y eficacia
Gestión de las finanzas públicas
Apoyo a empresas e inclusión económica
01.12.2017 - 31.12.2021
CHF  7’000’000

Ulaanbaatar is home to more than half of Mongolia’s population, largely due to the influx of migrants from rural areas. Half of the city’s population (750,000 people) reside in semi-urban ger[1] areas. Ger areas are characterised by high rates of poverty, substandard service delivery and obsolete or insufficient infrastructure particularly heating systems, social infrastructure, water and sewage, as well as roads and public transport. The root causes are politically driven decision-making for public investment and weak public finance management capacity. At present, no criteria exist for investment project prioritisation at any level; the only guidance is provided by a Ministry of Finance regulation. In addition, there are duplications of planning responsibilities among line ministry branches and subnational governments. Saving heat through energy efficiency is a top priority investment for local communities due to the benefits for (i) the health of citizens, particularly children, (ii) environment and climate, and (iii) the effective management of public finances. Retrofitting buildings has proved to be cost effective and relevant to people needs.


[1] The Mongolian term ger means portable, round tents covered with skins or felt that are used as a dwelling by nomads on the steppes of Central Asia or – in this context – by most of the recent immigrants into the semi-urban belt areas on the outskirts of Ulaanbaatar.

Objetivos Citizens, particularly children in ger areas of UB city, have access to better education and health facilities leading to better air and health and reduced heating costs.
Grupos destinarios
  • Parents, particularly mothers, children and teachers using the thermo-retrofitted schools and kindergartens.
  • Local governments (UB, districts).
  • Relevant departments/or executing agencies of the MUB.
  • Private construction companies.
  • Education ministry and its agencies
  • Academic institutions
Efectos a medio plazo
  1. Transparent, effective and gender-sensitive Public Investment Management for social infrastructure with a focus on schools and kindergartens has been sustainably introduced in the Municipality of Ulaanbaatar (MUB).
  2. Energy efficient thermo-technical technology is introduced and mainstreamed for sustainable replication in the MUB education sector.

Resultados previstos:  

  • Guidance based on clear criteria for a transparent Public Investment Management (PIM) cycle are developed and applied in MUB.

  • Effective and transparent PIM is achieved for the retrofitting of 20 education buildings.

  • MUB’s capacities are improved to independently carry out PIM projects in a transparent, effective and gender-sensitive way.

  • Evidence-based policy dialogues for replication, upscaling and dissemination of PIM, PFM and EE with MUB and national stakeholders are carried out.

  • 20 thermo-technical retrofitted buildings are completed, which are BNBD 2009 compliant and have improved water and sanitation facilities.

  • Blueprints for the retrofitting of seven standard types of school and kindergarten buildings are developed and approved for wider dissemination and replication.

  • The advantages of retrofitting technology are mainstreamed in MUB and applied to education and other public buildings and transferred to the private sector.

Resultados de las fases anteriores:  

PIE1 was implemented in two rural provinces (aimags) and was assessed as very successful by an external review: 

Local Development Fund (LDF) Management and Local Democracy: PIE1 established a fully-fledged capacity development programme for administrative and local democracy processes. It improved existing systems by strengthening standard structures and processes in Khovd and Zavkhan aimags. Democratic and participatory processes, and the inclusion of traditionally marginalised groups such as herders, women and ethnic minorities, were successfully introduced and applied at bagh, soum and aimag levels. PFM procedures related to the LDF were introduced and officials are now able to manage the entire project cycle, from selection to tendering, procurement, implementation and monitoring.

Demonstration of Energy Efficiency in Public Buildings: PIE1 thermo-technically retrofitted 16 public buildings (twice the target), namely schools, dormitories, kindergartens and health centers in remote rural soums of the two aimags. The retrofitted buildings serve as demonstrations of benefits of better insulation, namely financial benefit of up to 40% budget cost saving from reduced coal consumption, health benefit of up to 30% reduction in sickness among children and wellbeing benefit in terms of reducted cost by 1/3 for families of caring for sick children.

Dirección / Officina Federal responsable COSUDE
Crédito Cooperación al desarrollo
Contrapartes del proyecto Contraparte del contrato
Sector privado
  • Sector privado extranjero Norte

Otras contrapartes

Municipality of Ulaanbaatar city as a lead partner.

Others are MUB departments of Education, Procurement and Investment, Ministries of Education and Construction, Construction Development Centre, Songinokhairkhan and Bayanzurkh districts of UB, National Academy of Governance, professional association on construction.

Coordinación con otros proyectos y actores
  • Vocational Skills Development (GIZ)
  • Strengthening Representative Bodies in Mongolia (UNDP)
  • Mainstreaming Social Accountability in Mongolia (World Bank Group)
  • ENEV3+ (BMZ, GiZ)
Presupuesto Fase en curso Presupuesto suizo CHF    7’000’000 Presupuesto actual suizo ya emitido CHF    4’120’015
Fases del proyecto

Fase 2 01.12.2017 - 31.12.2021   (Completed)

Fase 1 01.08.2013 - 31.12.2017   (Completed)